The Secret Method in Real Estate You Need to Know

What is the Brrrr Method?

The secret method in real estate you need to know about my friends. It’s called the brrrr method. What is the brrrr method you ask? Before I answer that my friends, how are you guys doing out there? Good, I hope. But now back to the topic, just wanted to check in with you all. The Brrrr Method, also well known as the “Buy, Rehab, Rent, Refinance, Repeat” strategy to most. This is a real estate investment approach that was popularized by a man named Brandon Turner of BiggerPockets. It’s a systematic way for real estate investors out there to acquire properties with the goal in mind to generating a cash flow and building wealth over time. Here’s a breakdown of each step so you guys get a clear understanding of the brrrr method.

Buy

As the investor you want to purchase a property that is typically on the distressed side, undervalued, or in need of good renovation. The goal here is for you to acquire the property at a price below its market value.

Rehab

After you have acquired the property, you wanted. You as the investor now have to renovates or rehabilitates it to increase its value of the property. This might involve you making repairs, renovations, or just improvements to make the property more attractive you some renters. Not only that but potentially increase its rental income or resale value as an investment.

Rent

Once you have the property renovated the way you want and ready for occupancy my friends. You as the investor needs to rent it out to some tenants. The rental income that will be generated from your tenants will help cover your mortgage, taxes, insurance, and other expenses associated with the property.

Refinance

After your property has become stabilized and is now generating you some rental income. You as investor can now refinances the mortgage on the property. The goal is to pull out all equity that you have been building up through the renovation and appreciation of the property value.

Repeat

Now once you have all of the refinanced funds. You as the investor can now use that cash to purchase another investment property and repeat the whole process, hence the term “repeat.” This cycle allows you as the investor to leverage your initial capital to acquire multiple properties. Build a nice portfolio of income-producing assets over time as well.

Summary

Now with the Brrrr Method it can really be an effective strategy for building some long-term wealth through real estate investing. Particularly for all the investors out there who are willing to put in the effort to find and renovate distressed properties. As well as manage rental properties effectively. However, like any investment strategy my friends, it always comes with risks and requires careful analysis and execution my friends. But if you want to go for it, go for it my friend. Maybe speak with someone in real estate if you need a better feel for this method. As always thanks for your time today. Please come back and tell a friend about the site as well. Good luck!